The use of NiAl as a structural material has been hindered by the fact that this ordered intermetallic does not exhibit significant tensile ductility or toughness at room temperature. A critical review of the operative flow and fracture mechanisms in monolithic NiAl has thus established the need for ductile phase toughening in this order system. Progress in ductile phase reinforced intermetallic systems in general and specifically NiAl-based materials has been reviewed. In addition, further clarification of the primary mechanisms involved in the flow and fracture of ductile phase reinforced alloys has evolved from ongoing investigations of several model NiAl-based materials. The mechanical behavior of these model directionally-solidified alloys (Ni-30Al and Ni-30Fe-20Al) are discussed. Finally, the prospects for developing a ductile phase toughened NiAl-based alloy and the shortcomings presently inherent in these systems are analyzed.